CATTLE - CATTLE CFDs

Cattle is a derivative, leveraged instrument based on live cattle futures contracts, which are traded on the Chicago Mercantile Exchange (CME) and serve as a benchmark for cattle prices globally. These futures contracts allow producers, consumers, and speculators to hedge against price volatility or to profit from price changes. Live cattle refer to cattle raised for beef production, and their prices are influenced by various factors, including feed costs or consumer demand.

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The global cattle market is influenced by the supply and demand dynamics of the largest producing and consuming countries. Major cattle producers include:

• United States: A major producer and exporter of beef, with significant production concentrated in the Midwest and Great Plains.

• Brazil: A leading cattle producer and exporter, with vast agricultural land dedicated to cattle ranching.
• Australia: Known for high-quality beef production and an export-oriented industry.

On the demand side, major cattle-consuming regions include the United States, the European Union, and Asia, where beef is a staple food. Changes in consumption patterns, population growth, and economic development in these regions can influence global cattle demand. Additionally, trade policies, tariffs, and international relations play vital roles in shaping the global cattle market.

Trading Hours

CATTLE can be traded almost 24 hours a day during weekdays, reflecting the trading hours of the underlying Live Cattle CME futures contracts. The main trading sessions are as follows:

• Pre-Market Trading: Begins at 5:00 PM CST (previous day) and runs until the official market open at 8:30 AM CST.
• Regular Market Trading: From 8:30 AM CST to 1:05 PM CST.
• After-Market Trading: Starts at 1:05 PM CST and ends at 5:00 PM CST.

Expected Volatility

1. Market Open (8:30 AM - 9:30 AM CST): The first hour of regular trading is typically characterized by high volatility due to reactions to overnight news, feed prices, and global economic data.
2. Midday Trading (9:30 AM - 11:00 AM CST): Volatility tends to decrease, with lower trading volumes as the market settles into a steady rhythm.
3. Afternoon Trading (11:00 AM - 1:05 PM CST): Volatility can pick up again as traders position themselves ahead of the market close.
4. After-Market Trading (1:05 PM - 5:00 PM CST): Lower trading volumes but potential significant price movements due to late-breaking news or feed price changes.

CATTLE trading hours

• Economic Data Releases (8:00 AM - 10:00 AM CST): Major economic data releases, such as USDA cattle reports or global beef supply and demand estimates, often cause substantial market movements.
• Feed Price Reports: Critical factors in cattle production costs, feed price changes can significantly impact cattle prices.
• Overlap of U.S. and European Market Hours (7:00 AM - 11:00 AM CST): Higher trading volumes and increased volatility.